KN Energies AB — Interim / Quarterly Report 2016

Oct 31, 2016

AB Klaipėdos nafta financial results for the 9 months of 2016

31st October 2016

Mission, vision, values

Activities of the Company

LNG small scale

Global LNG import terminal projects

Highlights of Q3 2016

• AB Klaipėdos nafta and BNK (UK) Limited which is an affiliate of the leading exporter of Byelarussian oil products – ZAT Belaruskaja neftenaja kampanija , have signed a long term contract on provision of oil products transshipment services through AB Klaip ėdos nafta terminal . The terms of the Contract are valid until 31th October 2019 with an option to extend them .
• UAB SGD logistika, which is a wholly -owned subsidiary of AB Klaipėdos nafta , signed the amendments of a joint venture agreement with partner Bomin Linde LNG GmbH & Co . KG on joint performance of the activities of operating the LNG vessel . UAB SGD logistika will hold 10 % of the authorised share capital and Bomin Linde LNG GmbH & Co . KG will hold 90 % of the authorised share capital .
• On 3th October 2016 , the Company sold it's 33 .33 per cent shares of UAB LITGAS . The shares were acquired by Lietuvos energija , UAB which now owns 100 per cent of UAB LITGAS share capital . Transaction amount – EUR 4 350 000 .

*For the last 12 month period

EBITDA for the 9 months of 2015, MEUR

-0.3

MEUR	9 months, 2016	9 months, 2015
Revenue	27.7	28.5
Net profit	9.1	10.8
EBITDA	14.9	17.9

Business factors:

• During 3rd quarter 2016 Orlen Lietuva achieved 98.1 per cent utilization capacity. Therefore Company reloaded 17 per cent more oil products in comparison to 3rd quarter 2015.
• In the second half of 2016 due to political reasons the crude oil supply to Byleorussia refineries has been reduced that affected the slow down in transit cargos transhipment.

Revenue & EBITDA, MEUR

Transshipment, thousand tons

MEUR	9 months, 2016	9 months, 2015
Revenue	2.1	1.8
Net profit	0.9	0.6
EBITDA	1.6	1.3

Business factors:

• In connection with the increased fuel consumption the amount of stored obligatory reserve of oil products has increased accordingly.
• During the 9 months of 2016 sales revenue from the commercial contract amounted to EUR 479 thousand.

Revenue & EBITDA, MEUR

Average storage volume, thousand tons

MEUR	9 months, 2016	9 months, 2015
Revenue	50.5	48.6
Net profit*	3.3	1.9
EBITDA	8.0	6.1

*The LNG terminal activity profit is regulated in terms as set by the laws. Actually foreseen the net profit for the LNG activities for the year 2016 should amount to EUR 4.5 million. Additionally collected amount will be dedicated to compensate the LNG terminal required expenses for the upcoming financial periods.

Facts:

• During the 9 months of 2016 13 LNG carriers have been accepted, which have delivered 812.9 thousand tons LNG;
• 12,218 thousand MWh natural gas have been re-gasified and supplied to the gas transmission system (+232%);
• In Q1-Q3 2016 there were 3 LNG terminal users: LITGAS UAB, Lietuvos dujų tiekimas UAB, Achema AB.

Revenue & EBITDA, MEUR

Re-gasification, thousand MWh

Investments of the Company, EUR thousand

Investment projects approved by the Board

As to the Company's Strategy for 2016 – 2020, EUR 200 millions of investments are planned, including EUR 100 million investments into Global LNG projects.

MEUR	9 months,	9 months,	Change
	2016	2015	%
Sales Revenue	80.3	78.9	1.8%
Gross profit	18.4	18.9	-2.6%
EBITDA	24.3	25.0	-2.8%
Profit before taxation (EBIT)	14.3	15.3	-6.5%
Net profit	13.0	13.1	-0.8%
Gross profit margin	22.9%	23.9%	-
EBITDA margin	30.3%	31.8%	-
Net profit margin	16.2%	16.6%	-
Return on equity (ROE)*	11.6%	9.6%	-
Return on assets (ROA)*	9.1%	7.8%	-
Profit per share (EPS), EUR/share	0.034	0.034	0%
Average number of shares	380,606,184	380,606,184	-

* Ratios are calculated for the last 12 months period.

Equity and liabilities, MEUR

Other information

13

Since 2003 the shares of the Company are listed on NASDAQ OMX Vilnius stock exchange:

• ISIN code LT0000111650
• Abbreviation KNF1L

As at 30 September 2016 all the shares of the Company were owned by 1,929 shareholders (as at 31 December 2015 – 1,847)

Shareholder's name (company's name, address, company code of	31st of March 2016		31st of December 2015
registration)	Number owned shares (unit)	Part of authorized capital (%)	Number owned shares (unit)	Part of authorized capital (%)
The Republic of Lithuania, represented by the Ministry of Energy of the Republic of Lithuania (Gediminas Ave. 38/2, Vilnius, 302308327)	275,241,290	72.32	275,241,290	72.32
Concern SC Achemos grupe (Jonalaukis village, Jonava district, 156673480)	38,975,150	10.24	38,975,150	10.24
Other (each owning less than 5%)	66,389,744	17.44	66,389,744	17.44
Total	380,606,184	100.00	380,606,184	100.00

Trading in KNF1L shares on Nasdaq Vilnius stock exchange in January - September 2016

• Supervisory board members:
• Agnė Amelija Petravičienė
• Romas Švedas
• Eimantas Kiudulas
• Audit committee members:
• Linas Sasnauskas
• Eimantas Kiudulas
• Kasparas Žebrauskas
• Board of the Company members:
• Rytis Ambrazevičius
• Mindaugas Jusius
• Dainius Bražiūnas
• Mantas Bartuška

*Currently recruitment of the independent Board members has been announced. The recruitment process is for the open position of an independent Board member.

The Directors of the Company

Mantas Bartuška General Manager

Osvaldas Sabaliauskas Deputy General Manager

Marius Pulkauninkas Director of Finance and Administration Department

Genadijus Andrejevas Director of Technical Department

Gediminas Vitkauskas Director of the Oil Terminal Department

Tadas Matulionis Director of the LNG Terminal Department

Darius Šilenskis Director of Oil Commerce Department

Thank you for your attention

AB Klaipėdos nafta

Registered address - Burių str. 19, LT-91003; Klaipėda Lithuania

Mailing address - Baltijos ave. 40, LT-93239, Klaipėda, Lithuania

Tel. +370 46 391772

Fax +370 46 311399

www.oil.lt, www.sgd.lt